Bringing together insurance data for 2011 and extrapolating the likely market direction for this year, the Aon Airline Insurance Market Outlook 2012 suggests that while airline claims were at a historically low level last year, the risk that the aviation industry represents remains high and as such prices are likely to remain stable for the majority of airline insurance programmes.

The report confirms that the underlying cost of insurance continues to fall. Exposures, represented by average fleet value and passenger forecasts, are growing, meaning that the real cost of insurance is falling.

Implications of Arab Spring and political transitions raise concerns for businesses around the world: Aon Political Risk Map

The resulting tension has spurred or intensified protests in dozens of countries, both within the region and elsewhere, increasing chief stakeholders' interest in political risk insurance.

Aon measured political risk in 167 countries and territories to assess the risk level of exchange transfer, sovereign non-payment, political interference, supply chain disruption, legal and regulatory, and political violence.

Aon's political risk experts help clients protect their international trade, foreign investments and overseas assets. To register for a copy of the map, please visit aon.com/2012politicalriskmap

Volatility continues to be limited in the aerospace insurance market, with prices staying fairly close to parity as a result of the low level of claims in the aviation industry generally as well as healthy competition among insurers.

The competing pressures on the airline insurance market means a soft trend overall. The world’s economic recovery is patchy to say the least however, and the divergence in insurance prices reflects this.

Average lead premium during the first half of the year suggests that there is relatively little volatility in the airline insurance market. The high level of capacity and the low level of claims are keeping the harder market conditions in check.